From Sweta Killa: For investors seeking momentum, Renaissance IPO ETF (IPO – Free Report) is probably on radar now. The fund just hit a 52-week high, and is up 46.5% from its 52-week low price of $21.63 per share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
IPO in Focus
This fund provides exposure to the largest and most-liquid newly listed companies by tracking the Renaissance IPO Index. New companies seek inclusion on a fast entry basis on the fifth day of trading. The fund has key holdings in technology and consumer services. It charges investors 60 basis points a year in fees.
Why the Move?
The IPO market has been an area to watch lately given the slew of hot and sizzling public offerings like Levi Strauss (LEVI – Free Report) , Lyft (LYFT – Free Report) , Pinterest (PINS – Free Report) , Zoom Video Communications and Beyond Meat Inc BYND.
More Gains Ahead?
It seems that IPO might remain strong given a higher weighted alpha of 16.70% and a low risk as depicted by the 20-day volatility of 13.80%. As a result, there is definitely still some promise for investors, who want to ride on this surging ETF a little further.
The Renaissance IPO ETF (IPO) was trading at $30.89 per share on Wednesday afternoon, down $0.01 (-0.03%). Year-to-date, IPO has gained 9.61%, versus a 8.61% rise in the benchmark S&P 500 index during the same period.
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